Sunday, 30 November 2008

Singapore / Salary Reductions

 

   I've got some experience of salary reductions from the last Russian financial crisis at the end of the 1990s.  They're never going to be easy to implement and so I was concerned to learn from my Singapore hotel that the city state is slashing civil servant wages

I agree with Management Issues that it's interesting to see the public sector taking a lead in doing this.  The UK would certainly benefit from following the lead and doing something about its public / private sector pensions divide.

But there's a growing need for other sectors to start thinking about how they can reduce compensation costs too.  In particular, I think it's the next thing financial services firms need to think about once they've got their heads around 'maluses'.

I'd recommend readers who aren't convinced of the need to make some rather unconventional changes at the moment to consult some great posts by Know HR.  As Frank Roche explains:

"The world economy is in Holy Crap Mode. If you’re clinging to old HR rules because it’s the only thing you know, it’s time to practice this phrase: “You want fries with that?”

 

 

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